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$31.07m profit for Fijian Holdings Group

$31.07m profit for  Fijian Holdings Group
FHL Group chief executive officer Nouzab Fareed
August 20
11:27 2017

Despite the hurdles and challenges faced this year by Fijian Holdings Limited (FHL), it has remained grateful for the great performance of its companies.

FHL Group chief executive officer Nouzab Fareed said the Group has made a consolidated profit after tax of $31.07 million for the current year. This compared to $23.40 million recorded the previous year.

This is a 33 per cent  growth in its post-tax profits for 12 months ending 30 June 2017.

Meanwhile, Fijian Holdings Limited recorded a post tax profit of $22.98 million for the 12 months ending June 2017 compared to $20.44 million in 2016.

FHL Group chairman Adrian Sofield said, the Group companies have performed well given the many challenges during the financial year.

“Both the Group and the holding company have achieved positive results setting new benchmarks for further improvement going in to the new financial year,” said Mr Sofield.

A third of the group’s revenue is attributed to RB Patel’s great performance this financial year, added Mr Fareed.

The increase in this year’s profit was also a result of the great performance by the group’s Basic Industries followed by South Sea Cruises and Pacific Cement.

As of 30th June this year, FHL Group’s total assets stands at $525milllion, a 7% increase compared to last year.

Whereas the net assets, total money owned by the shareholders of the company, stands at $250 million, a 9% increase compared to the previous financial year.

However, Pacific Cement and Merchant Finance had made a loss this year compared to last year.

  • PACIFIC CEMENT LIMITED
    Earlier this year, Pacific Cement’s mill plant had broken down causing a disruption in at least two months of the company’s production.
    Despite that, the company had managed to make a profit although lesser than what was made last year, according to Mr Fareed.
    A profit of $1.1million was made this year compared to $2.1million last year, a 47% decrease in profitability.
  •  MERCHANT FINANCE
    A 48% decrease in the company’s profit was recorded in this financial year as a result of a bad debt written off.
    This had resulted to the company’s poor performance.
    According to Mr Fareed, this is the lowest profit in 14 years.
  •  SHARE PRICE
    Under the South Pacific Stock Exchange (SPSE), FHL’s share price previously stood at $4 but has increased to $4.70 as per SPSE’s Daily Quotes on 17th August.

So how did the Group manage to achieve tremendous success despite the challenges? What is the Group’s secret weapon?
According to Mr Fareed, the answer is simple.

It is: Diversifying the risks.
“We do not put all our money in one basket. That is why when Merchant Finance and Pacific Cement went down, RB Patel and the Basic Industries had gone up. If it was not for these issues, this year, we could have gone much further than what we achieved in the past,” said Mr Fareed.

Aside from the success of the major companies, Mr Fareed said the Group is extremely happy with the performance of its associate companies: Golden Manufacturers Fiji, Marsh Limited and Pernix (Fiji) Limited.

 

WAY FORWARD
In Merchant Finance’s case, Mr Fareed said a new generation of management team has taken over the company.

He added the Group is confident that the acting chief executive Rowena Fong will be able to take the company to the next level.

As for Pacific Cement, the company had recently imported 25 000 tonnes of cement from Vietnam.

The cement factory is back in production and is currently producing more than 12,000 tonnes per month.

Mr Fareed said the factory will be closed for four weeks in September for maintenance and refurbishment of the factory.

“We are very positive that we will be able to do much better next year.”

An investment of more than $15 million has been allocated to the group’s companies to improve during the next 12 months.

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